Benchmark indices extended gains and ended on a strong note as investors gave a thumbs up to the pro-growth Budget 2022.
Finance Minister Nirmala Sitharaman today unveiled a budget that aims to boost growth amid continued disruption from COVID-19 and rising inflation.
The BSE Sensex rose 848 points (up 1.5%) at the closing bell.
Meanwhile, the NSE Nifty closed with a gain of 237 points (up 1.4%).
Tata Steel and Sun Pharma were the top gainers today.
On the other hand, BPCL and IOC were the biggest losers today.
At the time of writing the news, SGX Nifty was trading up 246 points at 17,595.
The BSE Midcap index and BSE Smallcap index ended up 1.1% and 0.9%, respectively.
Sectoral indices closed on a positive note with the metal sector, engineering sector and FMCG sector being the biggest buyers.
On the other hand, selling pressure was seen in oil & gas and auto stocks.
Shares of Sun Pharma and IDFC today hit their 52-week highs.
Asian stock markets today closed with a mixed trend.
The Hang Seng edged up 1.1%, while the Shanghai Composite ended 1% lower. Nikkei closed with a gain of 0.3% in today’s trading session.
US stock futures are trading on a negative note today, with Dow futures trading down 55 points.
Rupee is trading at 74.79 against US Dollar.
Gold prices are trading up 0.7% for the latest contract on MCX 48,006 per 10 grams.
Highlights of Nirmala Sitharaman’s Budget 2022 speech
Finance Minister Nirmala Sitharaman presented her fourth budget today. In view of the situation of Kovid-19 epidemic, this is the tenth and second paperless budget of the Narendra Modi government.
finance
Public issue of Life Insurance Corporation (LIC) expected soon
Emergency credit line guarantee scheme for small and medium-sized businesses to be extended till March 2023
Energy transition and climate action will be a major government priority
Long Term Capital Gains (LTCG) surcharge will be 15%
To amend the Insolvency Code to expedite the resolution process
The target of reducing the winding up of companies to 6 months from the current 2 years
digital currency
To launch Digital Rupee blockchain technology 2022/23. Starting from
To launch scheme for taxation of virtual digital assets
Losses from the sale of virtual digital assets cannot be compensated for by other income
Income from virtual digital assets will be taxed at 30%
PM Gati Shakti Yojana
During the next 3 years, 400 new generation Vande Bharat trains will be brought with better efficiency and 100 PM Gati Shakti Cargo Terminals will be developed
Besides being a leader in the integration of postal and railway networks to provide seamless solutions for the movement of parcels, the Railways will develop innovative products and efficient logistics services for small farmers and small and medium enterprises.
Large scale urban transport and multimodal connectivity between railway stations to be facilitated on priority
Agriculture
Domestic scheme launched to reduce dependence on oilseeds import
Fund with mixed capital raised under co-investment model for financing agriculture startups
capex
The central government continued its focus on capital expenditure in the fiscal year 2023 budget to aid economic recovery.
The government capital expenditure for the financial year 2023 is estimated at 7.5 tonnes, which is about 2.9% of India’s GDP.
The declared capital expenditure is 35.4% higher than the budget estimate 5.54 tonnes in the same period last year. Sitharaman said, “Public investment needs to crowd in private investment to help private investment potentially grow and grow.
allocation of 480 billion announced under PM Awas Yojana. Going forward, this will help real estate, paint and adhesive companies.
Taxation
Customs duty exemption on steel scrap to be extended for one more year for small and medium-sized businesses
Customs duty will be canceled on stainless steel, flat products, high steel bar
Additional duty of Rs 2 per liter on blended fuel from October 2022
Import duty on some chemicals being reduced
Further, the Finance Minister said that India’s GDP growth will be the highest among all the economies. According to his speech, India will register an economic growth of 9.2% for the financial year 2022.
Talking about the budget, Aditya Vora, Research Analyst, Equitymaster, believes that the objective of the budget was to emphasize on the capital goods sector, which should benefit the old economy like cement and steel.
According to him, private capital expenditure could be the next trigger for the economy.
In news from the auto sector, Maruti Suzuki was one of the top buzzing stocks today.
Maruti Suzuki India sold a total of 1.5 lakh units in January 2022. Total sales for the month included domestic sales of 1.3 lakh units, sales of 3,981 units to other original equipment manufacturers (OEMs) and exports of 17,937 units.
Maruti Suzuki India said in a statement,
The lack of electronic components had a minor impact on the production of vehicles that are mainly sold in the domestic market. The company took all possible measures to minimize the impact.
The Gurugram-based largest carmaker sold 18,634 units in the MINI segment in January 2022 as against 25,153 units in the same period last year. The Mini segment of Maruti Suzuki includes Alto and S-Presso.
The compact segment also clocked in at 71,472 units in January 2022 as compared to 76,935 units in the same phase in 2021. The compact segment of MSI consists of Baleno, Celerio, DZire, Ignis, Swift, Tour S and WagonR.
In contrast, the mid-sized Ciaz saw demand in sales in January 2022. The company sold 1,666 units in January 2022 as against 1,347 units sold in the same period last year.
In the UV segment, sales of cars like Ertiga, Gypsy, S-Cross, Vitara Brezza, XL6 reached 26,624 units in January 2022 as against 23,887 units last year. Eeco sales this year have come down slightly to 10,528 units as against 11,680 units in January 2021.
Exports for MSI have increased to 17,937 units in January 2022 from 12,445 units in January last year.
Share price of Maruti Suzuki ended the day down 0.4% on BSE.
Moving on to the news of the telecom sector…
Telecom stocks in demand after FM rolls out 5G in 2022
A requisite spectrum auction would be conducted in 2022 for rollout of 5G mobile services by private telecom providers, which was followed by discussions in telecom stocks, Finance Minister Nirmala Sitharaman said in her budget speech today.
A scheme will be launched for design based manufacturing for 5G Ecosystem The minister said that affordable broadband and mobile communication would be enabled in rural and remote areas as part of the PLI scheme.
The auction of 5G spectrum in the new fiscal brought telecom service providers, concerned players and optical fiber stocks into the sweet spot.
5% of the annual collection will be allocated under the USO Fund, to provide R&D and promote commercialization of technology and solutions, to enable affordable broadband and mobile service and dissemination in rural areas.
Shares of Vodafone Idea ended on a flat note, while Bharti Airtel ended the day down 0.9%.
Telecom companies, including HFCL, rose 5% after Sitharaman’s announcements, while Tejas Networks rose 4%. Telecom equipment player ITI also closed with a gain of 0.8%.
Speaking of stocks, here is an example of the four stages a stock goes through during its life cycle. The cycle repeats itself after the stock has passed through all these stages.
see full image
This cycle defines everything in the markets. If you master this cycle, nothing can stop you from making huge profits.
(This article is syndicated from) equitymaster.com,
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